By Kimberly Crain
In an exciting development for the crypto sector, DZ Bank, the third largest bank in Germany by asset volume, has released a blockchain-powered custodial platform for digital assets.
In a November 2 publication, the DZ group stated that the newly launched crypto custodial platform will offer institutional clients exclusive crypto securities. This development signals DZ bank’s commitment to expanding its product offering and taking advantage of the high demand for crypto custodial services in Germany.
DZ Bank Launches Crypto Custodial Platform
An announcement conveyed by DZ Bank head of securities services and digital custody Holger Meffert reveals the bank plans to invest heavily in distributed ledger technology (DLT).
The executive believes that with the convergence of the conventional banking system to the blockchain ecosystem, the capital markets will implement DLT infrastructures to fast track business processes. Meffert anticipates that DLT will dominate the capital markets in the next decade.
Banks in Germany Eying to Introduce Crypto Custodial Services
With the emerging trends in the financial sector, the capital market is poised to leverage the DLT infrastructures to complement the existing applications and software.
Also read:As the capital market remains active, the DZ Bank plans to seize the existing opportunities by offering institutional customers a platform to trade crypto assets.
The bank envisages that the DZ customer will buy and sell Bitcoin on their platform. In preparation for introducing the crypto custodial services, the DZ team purchased the crypto bond offered by Siemens to reduce paperwork and attract a large audience.
At that time, the DZ team anticipated selling Siemens’ digital bond to institutional and private customers. According to the announcement, the DZ team will offer crypto securities, including Siemens’ digital bond. Besides expanding DZ’s product offering, the financial institution plans to operate as a complaint company.
German Lawmakers Seeks to Tighten Crypto Regulations
Even though the process might be vigorous, the DZ team applied for the crypto custodial license in June. At that time, Commerzbank and DekaBank were waiting for the Federal Financial Supervisory Authority (BaFin) to approve their crypto custodial license.
With the transitional regime, German lawmakers have been at the forefront of amending the existing crypto regulation to allow banks and local custodial service providers to introduce digital assets in the product offering.
The change in regulatory approach for digital assets has motivated banks to introduce crypto assets. Earlier in March, the largest bank in Germany by total assets, Deutsche Bank, launched a unique trading platform, wpNex.
The launching of wpNex aimed to allow local banks to introduce crypto assets in their product offering. Months later, the DWS Deutsche’s affiliate company revealed plans to launch an exchange trade product. The DWS also plans to provide innovative solutions on digital assets to investors and customers.
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